Sprint Nextel Undercuts the iPhone with Price of the Instinct

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Samsung Instinct to cost $129.99, launches Friday

Carrier Sprint Nextel announced today that its smart phone, the Samsung Instinct, will sell for $129.99 when it goes on sale Friday. The cheapest iPhone model, which reaches the public on July 11, sells for $199. It looks as though Sprint is hoping to compete with AT&T in the smart phone market by being cheaper and quicker to market.

The Instinct is similar to the new iPhone. It includes access to a fast wireless data network and a GPS receiver. Sprint worked closely with Samsung to develop the Instinct, and the carrier plans to spend quite a bit of money to promote the handset in the United States.

Earlier this year, Sprint hinted that the Instinct would cost over $200. Once Apple announced the price of the new iPhone, Sprint said it would match pricing. Today’s announcement, undercutting the iPhone by nearly $70, indicates that Sprint is willing to intensify the smart-phone competition.

Like the iPhone, a two year contract is required to buy the Instinct in the United States. The cheapest monthly plan has a cost close to $80 a month after taxes and fees. This makes the total contract price come in at about $1,900.

Samsung Instinct from Sprint

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